Why Catholic Health Partners and Mercy Health Embrace Supplier Diversity
Why is supplier diversity important to Catholic Health Partners (CHP) and Mercy Health? America’s strength is due in no small part to its heritage as a "melting pot" of people from a wide variety of backgrounds.
CHP and Mercy Health benefit in a similar fashion through our commitment to diversity among our associates and the businesses that supply goods and services to us. We can better understand the needs of the diverse populations we welcome into our hospitals and other facilities daily if our suppliers and associates more accurately reflect the makeup of the communities we serve. Diversity among associates and suppliers helps CHP keep pace with rapid change in healthcare and in the communities we serve and introduces new ways of thinking into the organization. We gain a more holistic understanding of our challenges and opportunities and, as a result, end up with much better outcomes. We improve quality and reduce costs. We encourage more rigorous competition. Awarding contracts to minority and women-owned businesses is also in line with our mission to help the underserved.
Michael Connelly, CHP’s President and CEO, has publicly committed to making CHP a leader in supplier diversity, and James May, President and CEO of Mercy Health (part of the CHP system), is helping make that vision a reality in Cincinnati. May chairs the CHP Supplier Diversity Team, which has worked hard to achieve these strong regional and corporate results.
CHP notched significant results in supplier diversity in 2011, when we spent $58.9 million with certified women- and minority-owned firms, tripling our 2010 spend in supplier diversity, which represents 6.4% of our annual spend in 2012. Our goal is to continue to increase our supplier spend to meet or exceed 10% of our total expenditures.
That translates into good news locally.
Mercy Health is working with the Greater Cincinnati Health Council to implement a strategic approach to increasing supplier diversity in the region. This is the only region in the country that we know of in which hospitals from all systems have come together to implement a comprehensive plan to improve supplier diversity. CHP entities including Mercy Health, Springfield Regional Medical Center and our Senior Health and Housing locations in the region achieved $23.4 million in diversity spending in 2011, far exceeding their total spending goal of $12.3 million. The goal for 2012 is $26.5 million and they are well on track to meet it.
Mercy Health currently has a number of Cincinnati area construction projects in process. Foremost among those is Mercy Health - West Hospital, one of the largest construction projects in town, which has committed to include over $47 million in contracts to minority- and women-owned businesses. The inclusion effort does not end with minority- and women-owned contractors. Mercy Health has also ensured that more than 22% of the construction workforce is made up of women and minorities.
Mercy Health - Fairfield Hospital awarded 100% of its fifth-floor renovation to a minority-owned firm and Mercy Health plans to award contracts to minority- and women-owned firms for a significant amount of the work to be done in expansion projects at The Jewish Hospital – Mercy Health and Mercy Health – Anderson Hospital as well.
While construction projects make up a large portion of Mercy Health’s inclusion plans, construction is by no means the only area in which Mercy Health is working to be more inclusive. Through April of 2012, Mercy Health has spent over $7 million with minority- and women-owned firms, putting it on track to meet its 2012 diversity spending goal of $22.1 million. Mercy Health is utilizing minority- and women-owned businesses in a wide array of areas including: Clinical services, Commercial printing, Equipment and surgical instruments, Facility services, Food services, Housekeeping supplies, IT, Instrument repair, Interior design, Lab and pharmacy, Language services, Marketing and advertising, Medical supplies, Office supplies, Professional services, Staffing services
Supplier diversity is a part of an overall diversity and inclusion strategy to which CHP and Mercy Health are committed, including increasing the diversity of our associates, especially in leadership. Stay tuned as we accelerate toward our goal.